BofA Closing $12B Fund

BofA said that it planned to slash 3,000 positions in total. More than 500 jobs have already been cut.

The company could face $3 billion in writedowns in the fourth quarter due to its investments in once-highly rated collateralized debt obligations, which have seen their values plummet, BofA said at an investor conference last month.

BofA also is working with Citigroup(C Quote) and JPMorgan Chase(JPM Quote) on putting together a super-fund to invest in troubled structured investment vehicles, off-balance sheet debt investment funds that have become difficult to price in the current credit environment.

French bank Societe General on Monday said it would bail out a $4.3 billion SIV and bring its losses onto its balance sheet. U.K.-based HSBC(HBC Quote) earlier this month became the first bank to absorb SIV losses onto its balance sheet when it shut down two troubled funds.